Tec Inc. produces and sells computers, providing customers with a one-year warranty on all its products. It is estimated that the company incurs approximately $100 of warranty expense on each computer sold. During 2023, the company sold 600 computers. All warranty transactions are recorded on December 31. What is the journal entry to record the estimated warranty liability? Select one: a. Debit Warranty Expense $60,000; credit Estimated Warranty Liability $60,000 b. Debit Warranty Expense $100; credit Unearned Warranty Revenue $100 c. Debit Warranty Expense $60,000; credit Warranty Revenue $60,000 d. Debit Warranty Expense $60,000; credit Unearned Warranty Revenue $60,000

Tec Inc. produces and sells computers, providing customers with a one-year warranty on all its products. It is estimated that the company incurs approximately $100 of warranty expense on each computer sold. During 2023, the company sold 600 computers. All warranty transactions are recorded on December 31. What is the journal entry to record the estimated warranty liability? Select one: a. Debit Warranty Expense $60,000; credit Estimated Warranty Liability $60,000 b. Debit Warranty Expense $100; credit Unearned Warranty Revenue $100 c. Debit Warranty Expense $60,000; credit Warranty Revenue $60,000 d. Debit Warranty Expense $60,000; credit Unearned Warranty Revenue $60,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 10E

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